Savings and Credit Cooperatives (SACCOs) have been encouraged to develop products that appeal to the youth to ensure long-term growth.
Speaking at the 10th Annual SACCO Leaders’ Convention in Mombasa, Safaricom’s Chief Business Enterprise Officer, Cynthia Kropac, emphasized the need for SACCOs to embrace digital transformation to attract younger members. She noted that the average SACCO member is currently over 40 years old, while most SACCOs have been operating for at least two decades.
“In the past four years, more than 100 fintech companies have emerged in Kenya, and within this short time, they have built asset bases comparable to or even surpassing those of SACCOs. This is because Kenya has a youthful population seeking financial solutions that align with their current needs, primarily on digital platforms,” Kropac explained.
With young people comprising 70% of Kenya’s population, she stressed that SACCOs must digitize not only their customer interactions but also their internal processes and operational systems.
“Only about five percent of SACCOs present at this forum are fully digitized, and less than one percent can afford the available co-banking platform systems in the market,” she added.
My SACCO App Launch
To support SACCOs in their digital journey and appeal to younger generations, Safaricom introduced My SACCO App—a multi-tenant digital platform designed to streamline SACCO operations and address challenges related to managing a growing and diverse membership.
This shared infrastructure model is expected to cut operational costs by up to 50% compared to individual SACCO implementations.
“My SACCO App enables SACCOs to digitize affordably by offering cloud-based solutions. This eliminates the need for heavy and costly infrastructure investments. Through this platform, we provide a one-stop shop that ensures connectivity, cybersecurity, and the ability to engage with a broader market,” Kropac stated.
